ENTREPRENEURIAL NETWORKS AND GROWTH OF MICRO AND SMALL AGRIBUSINESS ENTERPRISES IN NAIROBI COUNTY KENYA

Angella Wambui Kamau, Dr. Anne Marie Wairimu Mungai

Abstract


The agricultural sector is a significant contributor to Kenya's economy. Despite their importance, agribusiness MSEs faces considerable challenges. A World Bank survey in 2019 indicated that only 23% of agribusiness MSEs in Kenya has access to formal financial services, highlighting a significant barrier to growth. Furthermore, 45% of these enterprises struggle with accessing markets, both locally and internationally. The general objective of the study was to establish the influence of entrepreneurial Networks on Growth of Micro and Small Agribusiness Enterprises in Nairobi County Kenya. Specifically, the study seeks to find out the effect of strategic alliance on Growth of Micro and Small Agribusiness Enterprises in Nairobi County Kenya and to explore the influence of institutional networks on Growth of Micro and Small Agribusiness Enterprises in Nairobi County Kenya. This study was guided by: Game Theory and Institutional Theory. This study used a descriptive research design. The population of this study included all SMEs located in Nairobi City country. This number is large and hence can be considered infinite population. ). Since the population was infinite, purposive sampling of 100 SMEs was used. In this study the unit of analysis was Small and Medium Size Organizations in Nairobi City County while the unit of observation was 100 SME owners/managers. Since the population was infinite, purposive sampling of 100 SMEs was used. Primary data was collected through use of questionnaires. Statistical Packages for Social Sciences (SPSS) version 26.0 was used for analysis and presentation. The data was analyzed using descriptive and inferential statistics. Descriptive statistics included the mean, standard deviation, coefficient of variation and percentages. Pearson Correlation analysis was used to determine the relationship between individual variables in the objectives Multiple Regression analysis was used in testing the research questions by establishing the influence of each independent variable on the dependent variable. The significance of the model was interpreted using a significance level of 0.05. The results were presented on frequency tables, charts, and graphs. The study concludes that strategic alliance has a significant effect on Growth of Micro and Small Agribusiness Enterprises in Nairobi County Kenya. The study also concludes that institutional networks have a significant effect on Growth of Micro and Small Agribusiness Enterprises in Nairobi County Kenya. The study recommends that the management of SMES should leverage social networks for knowledge sharing and collaboration. Establishing community-based groups or cooperatives can facilitate the exchange of best practices, resources, and market opportunities among agribusiness owners. These networks can provide valuable support systems, enabling entrepreneurs to learn from one another, share experiences, and access joint marketing efforts that increase visibility and customer reach

Key Words: Entrepreneurial Networks, strategic alliance, institutional networks, Growth of Micro and Small Agribusiness Enterprises in Nairobi County Kenya


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